More Getting Caught In Stamp Duty Net 25/02/2005

Research published this week from Alliance and Leicester has revealed that, based on current trends, 90% of first time buyers will pay stamp duty within three years, rising to 95% by 2011.

At present, stamp duty of 1% is paid on most properties worth more than £60,000, with a rate of 3% applicable to houses costing more than £250,000 and rising again to 4% on properties worth more than £500,000.

It has been over ten years since the lower threshold has been raised, which has meant that property rises in the the same period have led to a fourfold increase first time buyers paying the tax.

The Treasury take has increased at an even greater rate since the lower threshold was last revised. Halifax recently revealed that the Treasury is expected to take over £4 billion in stamp duty this financial year, up from £465 million in 1994.